Application for Stay of Demand — Template
Ready-to-use draft reply template for stay of tax demand during appeal pendency under the Income Tax Act. Includes format, legal references, and compliance notes. Illustrative only — customize based on your specific case facts and professional advice.
Response Deadline: As specified in the notice (typically 15-30 days)
Filing: E-filing portal (incometax.gov.in) → Pending Actions → Response to Notices
When Do You Receive This Notice?
stay of tax demand during appeal pendency is issued by the Assessing Officer / CPC when Section 220(6) provisions are triggered. You must respond within the time specified in the notice — failure to respond can result in best judgment assessment, penalty, and prosecution.
Draft Reply
Subject: Application for Stay of Demand under Section 220(6) — PAN: [PAN] — AY [Year] — Demand Rs. [Amount]
I/we have filed appeal before CIT(A) against the assessment order. As per CBDT Instruction dated 31.07.2017 (F.No.404/72/93-ITCC), I/we have paid 20% of the disputed demand = Rs. [20% Amount] vide Challan dated [Date].
I/we request stay of the balance demand of Rs. [80% Amount] during the pendency of appeal on the following grounds: (a) strong prima facie case on merits, (b) recovery would cause genuine hardship, (c) balance of convenience favors stay.
Key Compliance Notes
Key: CBDT instruction says AO SHOULD grant stay if 20% paid and appeal pending. If AO refuses: approach CIT → PCIT → ITAT for stay. ITAT has inherent power to grant stay for 180 days (extendable). Courts have held that coercive recovery during appeal pendency is against natural justice.
Documents to Attach
| # | Document | Purpose |
|---|---|---|
| 1 | Copy of the notice received | Reference |
| 2 | Copy of ITR filed for the relevant AY | Proof of filing |
| 3 | Computation of income with supporting schedules | Substantiation |
| 4 | All documentary evidence supporting your position | Evidence |
| 5 | Bank statements, Form 26AS, AIS for the relevant period | Verification |